Company News

CORRECTED-Brazil's Azul posts Q2 loss of 45 million reais

(Corrects headline and first paragraph to quarterly loss, not profit, and that the loss widened from a year ago. Corrects second paragraph to loss, not profit, and cites sale of six planes.)

SAO PAULO, Aug 9 (Reuters) - Brazilian airline Azul SA posted a second quarter net loss of 45 million reais ($11.86 million), widening from its year-ago loss in the same quarter.

The airline attributed the loss to a truckers strike in Brazil that paralyzed ground transportation in May and to the sale of six planes, which were sold for less than their book value. The airline put the losses attributed to the strike at 51 million reais.

The company booked a 1300-percent increase in revenue in a category called “Result from related party transactions, net” but did not immediately explain what it was. Revenue in that category was 123 million reais, compared to 9 million last year.

Azul also saw a 17-percent increase in passenger traffic.

The cost of fuel increased 35 percent compared to last year, but it did not eat a significantly higher percentage of the airline’s overall revenue as it has with other competitors such as Copa Holdings SA and Gol Linhas Aereas Inteligentes SA..

As a percentage of the airline’s 2.1 billion reais in revenue, fuel was 27 percent compared to 24 percent last year. ($1 = 3.7951 reais) (Reporting by Marcelo Rochabrun Editing by Nick Zieminski)